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General Motors Co. reported this morning it sold 1.94 million vehicles globally during the second quarter, down 15 percent from a year earlier due to continued economic pressures and a drastic cut in vehicle production.

But compared to the first quarter, sales were up almost 20 percent.

Through the first six months of the year, GM sold 3.55 million vehicles, down 22 percent compared to last year.

Meanwhile, sales outside the U.S. rose to 72 percent of the automaker's total sales, compared to 65 percent a year ago.

"We believe the strength of our products, including the Chevrolet Camaro, Spark and Malibu; award-winning Opel/Vauxhall Insignia; Wuling Sunshine Minivan and others around the world enabled us to weather an historically difficult rebirth of the new General Motors," said Jonathan Browning, vice president, global sales, service and marketing. "We are moving quickly to respond to new market opportunities around the globe and meeting customer needs with fuel-efficient products that offer advanced technology, compelling designs and great value."

GM, which filed Chapter 11 bankruptcy on June 1, emerged from federal bankruptcy court on July 10 after a rapid restructuring and $50 billion in federal aid.

GM lost its title last year as the world's largest automaker by sales when it was overtaken by Toyota Motor Corp.

U.S. auto sales fell 27.7 percent in June, marking the smallest drop for the industry in nine months while dashing hopes that demand would rise to a 2009 high.

Ford Motor Co.'s 10.7 percent slide, its narrowest decline in 16 months, wasn't enough to keep the seasonally adjusted sales rate from slipping to 9.5 million, below analysts' projections of 10 million. June's SAAR retreated to April levels, before the Chrysler and General Motors bankruptcies, and was well below the 13.1 million from June 2008.

Still, the industry is recovering, said Patrick Archambault, an analyst with Goldman Sachs.

"Every single month has been better," he said. "We're in a bit of a holding pattern here for one month, but there's a lot of market drivers that are turning positive that should really help sustain an improvement once you get into the second half" of the year.

Ford fared better than other major automakers. It now stands at No. 2 in U.S. sales through the first half of the year after ceding the spot to Toyota Motor Sales U.S.A. Inc. in 2007. Ford's market share grew to 16.1 percent, ahead of Toyota's 16.0 percent and lagging GM's 19.7 percent.

GM's June sales were down 33.4 percent, and Chrysler Group LLC tumbled 41.9 percent, as both U.S. automakers slashed deliveries to fleets. Toyota slid 31.9 percent for its second-smallest drop of the year. Nissan North America's 23.1 percent decline was its smallest since its last monthly sales gain, in August.

American Honda, the only one of the top six automakers to post a sales gain in June of 2008, slid 29.5 percent last month.

Subaru had the only increase, up 3.4 percent. The Hyundai recorded a 24 percent decline, its weakest performance this year, while affiliate Kia fell 5.1 percent. BMW Group's sales were down 20.3 percent, their smallest slide since January.



Back below 900,000

Industry sales fell to 860,101, after rising above 900,000 in May for the first time this year.

Sales rates have ranged from 9.1 million to 9.9 million so far this year, stuck at 27-year lows. June's results, depressed as they were, managed to reduce the decline for the year to 35.1 percent.

Last month's percentage changes come in comparisons to June 2008, when the industry fell 18.3 percent. The industry's decline accelerated last summer as gasoline prices soared to their highest point on record, with AAA data stretching back to 1974. Sales rates plunged even more dramatically in the fall as the United States fell deeper into a recession that's now in its 20th month.

Car sales fell 31 percent last month, and trucks slid 23.1 percent, gaining some share after last summer's fuel prices curbed their sales.

Ford posted overall increases for its Fusion sedan, Escape crossover, Expedition SUV, Ranger truck and the Volvo brand. Retail sales for F-series trucks also increased from the previous year, the automaker said.

The second quarter was a "breakthrough" for Ford, Jim Farley, group vice president for marketing and communications, said on a conference call. While sales didn't increase, consideration and brand image did, he said.

Ford also benefited from year-ago comparisons that no longer include Jaguar and Land Rover. Monthly sales for those brands have been tallied by their new owner, Tata Motors, since June of last year.

Chrysler clearance

Chrysler said today it would run a July "summer clearance" promotion. The company will offer 0 percent financing for 60 months through GMAC Financial Services on some 2009 models, or up to $4,000 cash. Current Chrysler Group owners also may receive up to $1,000 cash on some 2008 and 2009 models.

Chrysler said it also will add up to $750 to the government's cash-for-guzzlers voucher for its current owners.

Chrysler gave June incentives worth $4,873 per vehicle sold, according to the auto information site Edmunds.com. The industry average was $2,930.

The automaker's fleet sales plunged 95 percent in June, while deliveries to individual customers fell 16 percent. Chrysler emerged from bankruptcy 10 days into the month after eliminating 789 dealerships.

GM's decline included a 49 percent drop in fleet sales. Both it and Chrysler had extended plant shutdowns in June.

Buick and Pontiac brands posted GM's smallest sales declines -- 10.7 percent and 16.4 percent, respectively. On Tuesday, GM said it would offer 0 percent financing for up to 72 months on most of its Pontiac brand and some other vehicles. It entered bankruptcy June 1 and plans to phase out Pontiac next year, along with selling Hummer, Saab and Saturn.

Hope for the second half

June marked the 24th year-over-year monthly decline in 25 months. But analysts still foresee some recovery in the next six months.

Goldman Sachs' Archambault pointed to results of the consumer confidence index measured by the Conference Board, a market information group. It had grown steadily from record-low levels in February, with data stretching back more than 40 years. The consumer confidence index took a small hit in June, but was still double February's levels.

"On a six-month lag basis, consumer confidence has been a strong predictor, so it still points to a back-half recovery," Archambault said.

Analysts forecasting a second-half improvement in sales also say the cash-for-guzzlers legislation President Barack Obama signed last week will improve car-buying interest and perhaps generate sales.

The government may not complete rules for the program until July 23, so consumers who were waiting for the law to pass may stay home for another month, said market analyst Chris Hopson, of IHS Global Insight.

The measure offers vouchers of as much as $4,500 to consumers who scrap gas-guzzling vehicles and buy new ones with better fuel economy. Predictions of the law's effectiveness in boosting sales have been mixed. But Goldman Sachs' Archambault said it should bump sales rates starting in August.

He said: "If all it does is add another 100,000 units to August, that's going to add another 1.2 million units to the SAAR."

General Motors Corp. looking to bolster sales as it prepares for a new start out of bankruptcy protection, will free financing on many vehicles for six days starting Wednesday.

The auto maker also plans to begin urging customers to capitalize on the recently passed "Cash for Clunkers" legislation that gives car buyers up to $4, 500 to trade in aged gas-guzzlers for new cars and trucks. The company's campaign will be called "Buy and Say Goodbye." Money for the clunkers program won't likely be available until late July, but GM wants to get customers thinking about a trade now, company spokesman John McDonald said.

GM's free-financing offer, a deal it has resuscitated several times amid a severe slump in U.S. auto sales, will apply to many 2009 and 2010 model year vehicles, including large pickup trucks and sport utility vehicles and the entire Pontiac line. GM is winding down Pontiac as parts of its Chapter 11 restructuring.

GM's sales are down 42% through May, sharper than the industry's 37% decline. Major auto makers will release Wednesday June sales results, which are expected to show some signs that the auto market has begun to stabilize.

Car makers have struggled to woo jittery, cash-strapped consumers despite offering generous deals.

GM's sale, though it runs six days, will be dubbed as a 72-hour holiday sale since dealers will, on average, be open only 72 of those hours because of the Holiday weekend, McDonald said. McDonald didn't disclose GM's incentive plans for later in July, but said "you can certainly anticipate we'll be offering reduced rate financing" at that time. It is unclear whether that will include 0% financing for 72-month loans on certain vehicles.

Ford Motor Co. also has begun to tout the clunkers program with a slogan, "Let Ford recycle your ride." Under the program, a vehicle qualifies for trade- in if it is a 1984 model or newer and gets no more than 18 miles per gallon. The replacement vehicle must have improved fuel economy.